BATS Chi-X Europe seeks to extend Spanish gains
Pan-European multilateral trading facility (MTF)
BATS Chi-X Europe has again extended its Spanish pricing promotion, after
becoming the first alternative venue to grab over 5% equity market share in the country.
The promotion – which covers trading,
clearing and settlement costs on the Chi-X Europe order book – will now run
beyond its current end of June expiry date until the end of September.
Under the promotion, the rebate for passive
executions in all IBEX 35 stocks will be 0.3 basis points, instead of the
standard 0.2 bps. Participants that trade in excess of €200 million per
calendar month will also have their gross central counterparty clearing fees
and settlement costs (for a maximum of two settlements per stock) refunded for
six selected securities.
The six stocks qualifying for the
post-trade cost reduction comprise Banco Santander, BBVA, Iberdrola, Inditex,
Repsol and Telefonica.
The promotion was first implemented in
October 2011, before BATS Global Markets completed its acquisition of Chi-X
Europe. The MTF accounted for 5.37% of trading in Spanish blue chip stocks last
Liquidity in Spanish stocks has taken
longer to materialise that other European markets because of complex post-trade
issues that previously required alternative venues to establish a relationship
with the local central securities depository. While these restrictions have
been lifted, settlement fees are higher for MTFs compared to the domestic
exchange and the settlement cycle is longer in Spain compared to other European